MUMBAI, India — Indian equity markets surged on Tuesday as investors welcomed the finalization of the long-awaited India-U.S. trade deal, sparking a broad-based rally across stocks and sectors.
Both benchmark indices ended the session with sharp gains, reflecting strong positive sentiment on Dalal Street. The Sensex jumped 2,072.67 points, or 2.54 percent, to close at 83,739.13, while the Nifty advanced 639.15 points, or 2.55 percent, to settle at 25,727.55.
“The key support zone remains at 25,500–25,600, while 25,900–26,000 acts as a major psychological and supply resistance area,” an analyst said.
The rally followed an announcement by U.S. President Donald Trump that the agreement would reduce reciprocal tariffs on Indian goods to 18 percent. The development boosted investor confidence, with expectations that stronger trade ties would benefit Indian companies and support broader economic growth.
Heavyweight stocks led the advance on the Sensex, with Adani Ports, Bajaj Finance, IndiGo, and PowerGrid posting strong gains during the session. Tech Mahindra and Bharat Electronics Limited were the only two Sensex constituents to close in negative territory.
Buying interest was visible across the board, as all sectoral indices ended higher. The Nifty Realty index emerged as the top performer, rising more than 4 percent. Other sectors, including chemicals, pharmaceuticals, and consumer durables, also saw solid gains of over 3 percent each.
The broader market joined the rally, with the Nifty MidCap 100 index climbing 2.84 percent and the Nifty SmallCap 100 index gaining 2.82 percent.
Analysts said the strong performance underscored investor optimism driven by positive trade developments and expectations of improved economic prospects.
“Indian equities experienced a significant rally today, driven by the long-anticipated India–U.S. trade deal and a strengthening rupee, which boosted expectations of renewed foreign institutional investor inflows,” an expert said.
Meanwhile, the rupee strengthened sharply, appreciating by Rs 1.28, or nearly 1.40 percent, following the trade deal announcement. The move marked the currency’s best single-day gain since December 2018. (Source: IANS)
